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Fruit & Vegetable Markets in the US Industry Market Research Report from IBISWorld Has Been Updated
  • USA - English


News provided by

IBISWorld

Sep 23, 2014, 10:00 ET

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A shift to organic and locally grown produce has helped the industry remain resilient

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New York, NY (PRWEB) September 23, 2014 -- Given the nondiscretionary nature of the industry's products, revenue for the Fruit and Vegetable Markets industry is generally stable; however, rising produce consumption and fruit prices benefited operators over the five years to 2014. Furthermore, sales for the industry follow unique preference and demographic trends, including a focus on healthy eating and the aging US population. While per capita fruit and vegetable consumption declined at an annualized rate over the five-year period, rising population levels offset this trend, causing total fruit and vegetable consumption to rise. As a result, industry revenue is expected to increase at an annualized rate over the five-year period; however, an expected sharp decline in vegetable prices in 2014 will likely cause industry revenue to decrease during the year.

According to IBISWorld Industry Analyst Stephen Hoopes, “The industry faces strong competition from traditional and nontraditional fruit and vegetable retailers like supermarkets and mass merchandisers.” An increase in fruit and vegetable sales accounted for by these retail outlets directly takes revenue away from industry operators. The Supermarkets and Grocery Stores industry (IBISWorld report 44511) accounts for a massive portion of the total retail food market, which does not leave much room for comparatively niche fruit and vegetable markets. However, a shifting focus to organic and locally grown produce has helped the industry remain resilient. In fact, the number of industry enterprises has increased over the five-year period. Organic offerings, which come with substantial price markups, have provided an incentive for new market entrants and expanded the industry's average profit margin.

The continued focus on health and organic foods is anticipated to drive the industry over the five years to 2019, with revenue increasing at an annualized rate. “While per capita produce consumption is anticipated to remain constant, population increases are forecast to continue, raising total produce consumption at a rate similar to the previous five-year period,” says Hoopes. To increase consumer produce consumption, government and private entities will emphasize the benefits of a healthy diet through campaigns and industry technology grants. Additionally, the rebounding economy will allow consumers to feel more comfortable making higher-priced purchases of organic produce, boosting industry performance.

For more information, visit IBISWorld’s Fruit & Vegetable Markets in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
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IBISWorld industry Report Key Topics

Fruit and vegetable venders sell a variety of produce through stands, farmers’ markets and retail locations where products are sold directly to the public. The industry’s permanent stands and markets are small and individually owned. This unique industry generates revenue from the sale of fruits and vegetables and excludes sales of produce generated from supermarkets, grocery stores and mass merchandisers.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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